Key Points:
- Decision imminent: Grayscale’s Bitcoin ETF fate to be determined this week.
- Legal context: Lawsuit against SEC cites inconsistent treatment of investment vehicles.
- Market impact: Verdict outcome could reshape Bitcoin ETF landscape.
Pundits suggest that a decision regarding the Grayscale Bitcoin ETF could be reached this week, potentially impacting the competition for an approved spot Bitcoin exchange-traded fund (ETF).
Grayscale Investments, in its pursuit to transform its Bitcoin trust (BTC) into a spot Bitcoin ETF, may receive a verdict on its legal action against the federal securities regulatory body by the close of the week.
Scott Johnsson, a general partner at Van Buren Capital, shared on August 11 that typically, law clerks in the United States District Courts rotate out during August, leading judges to resolve pending cases “before the new guard takes over.”
He highlighted that in March of 2021 and 2022, 30 out of 32 cases heard by United States District Courts were settled within 160 days of oral arguments, coinciding with August. Notably, it has also been 160 days since Grayscale presented its oral arguments in its lawsuit against the United States Securities and Exchange Commission on March 7.
Presently, only a handful of cases argued in March, including Grayscale’s, remain unresolved, according to Johnsson.
At the same time, Bloomberg analyst James Seyffart suggested that the decision might potentially be announced as early as August 15, a date he has been considering as a theoretical decision date for the Grayscale lawsuit.
Johnsson endorsed Seyffart’s forecast, deeming it a fairly reliable estimation.
Back in June 2022, the U.S. Securities and Exchange Commission declined Grayscale’s proposal to transition its GBTC to a spot Bitcoin ETF.
In response, Grayscale initiated a legal action against the securities regulatory body, alleging inconsistent treatment of comparable investment vehicles and arbitrary behavior.
Several industry experts, including Cathie Wood from ARK Invest and ETF analyst Nate Geraci, have expressed optimism about Grayscale prevailing in the lawsuit.
Recently, Grayscale articulated that the SEC should simultaneously approve all Bitcoin spot ETF applications to prevent any company from gaining an advantage over other applicants.
